Monthly Archives: March 2016

Classification of Financial Liabilities

PAS 39 Recognizes two classes of  Financial Liabilities; Financial Liabilities at FV through Profit & Loss Other Liabilities at Amortized Costs using the effective interest method  ex. Accounts Payable, Notes Payable, Debt Instruments and Deposits from Customers. Financial Liabilities Measurement … Continue reading

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PSA 220 Quality Control For Audit Work

QUALITY CONTROL FOR AUDIT WORK Audit Firm Level: The audit firm should implement quality control policies and procedures designed to ensure that all audits are conducted in accordance with PSAs or relevant national standards or practices. 1. Professional requirements: independence, integrity, … Continue reading

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PAS 1 Presentation of FS

Objectives of Standards  To prescribe basis for preparation of FS. Ensure comparability of FS for Prior Periods and Other Entities. Scope Applies to  all general purpose FS in accordance with PFRS Does not apply to condensed interim FS prepared in … Continue reading

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Measurement of the Elements of Financial Statements

Measurement of the Elements of Financial Statements Measurement involves assigning monetary amounts at which the elements of the financial statements are to be recognized and reported.  The Framework acknowledges that a variety of measurement bases are used today to different degrees and … Continue reading

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Recognition of Elements of Financial Statements

The Elements of Financial Statements Financial statements portray the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics. These broad classes are termed the elements of financial statements. The elements directly … Continue reading

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Primary vs Secondary Characteristics

Primary Characteristics Relevance – Information in financial statements is relevant when it influences the economic decisions of users. It can do that both by (a) helping them evaluate past, present, or future events relating to an enterprise and by (b) confirming … Continue reading

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Underlying Assumptions

The Framework sets out the underlying assumptions of financial statements: Accrual Basis.The effects of transactions and other events are recognized when they occur, rather than when cash or its equivalent is received or paid, and they are reported in the … Continue reading

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